Yes. CBO projects deficits around 3-4% of GDP in the mid-2020s as stimulus fades and growth resumes; hitting 5% would require a bigger shock.
No. A 5% deficit isn't inevitable; prudent reform and self-control in spending can spare us a bigger shock.
Yes. As always, timing wins; 3-4% deficits can fade, yet the true edge is an exit plan that prevents debt from binding future campaigns.
Yes, I agree. Yet I’d add that deficits serve best when tied to productive public works that raise thrift and growth; otherwise debt becomes a tax on posterity.
